"I was disappointed last night," the Democratic leader said. "This was an especially stunning move by the Supreme Court given just weeks ago the D.C. Circuit Court of Appeals categorically rejected a halt of the Clean Power Plan."

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His remarks come after the Supreme Court announced Tuesday night that in a 5-4 decision it was placing a stay on the Environmental Protection Agency's plan to cut carbon pollution from power plants while industry and state lawsuits move forward.

While Reid said the announcement is a "short-sighted decision by the court's five conservative justices" and an "unfortunate setback," he echoed the White House, saying that he is "confident" that the Obama administration's rules will eventually be upheld in court.

The Supreme Court's decision, however, likely means the president will leave office with the fate of a key pillar of his climate policy undecided.

Senate Republicans quickly pounced on the announcement, suggesting that it underscores their belief that the Obama administration's rules were a regulatory overstep.